Challenges facing Dairy Industry

Dear Minister, I know that you are well aware of the challenges that dairy farmers are currently facing. I also appreciate your recent comments regarding the dairy industry and applaud the coordinated response from industry and government in understanding the implications to respond immediately to ensure that the dairy farmers, their workers and their families have a secure future.

Unprecedented circumstances have conspired to place the very viability of many of our farmers and their enterprises in direct jeopardy.

Drought, declining market demand (deregulation of the EU countries/flooded stockpiles), and the highly contentious behaviour of milk processing companies has left many farmers in dire straits - financially and personally. In recent days we have also seen very heavy rainfalls in some areas of the State, particularly the North West, adding to the day-to-day challenges facing dairy and other farmers at the moment. The flow-on effects in the Tasmanian economy have the potential to be serious.

having grown up on a dairy farm, I acknowledge dairy farmers operate in a global environment and they are exposed to seasonal, market volatility. It is pleasing to note that the ACCC - the competition watch-dog, will investigate milk processors over recent shock cuts to farm gate prices, to consider whether the changes have involved misleading conduct or whether there are elements of unconscionable conduct.

I ask that the Tasmanian Government work closely with our local dairy industry, affected stakeholders, and the Australian Government to provide targeted immediate relief measures to assist our farmers and their families during this very challenging time.

The dairy industry is an significant player in, and contributor to, the Tasmanian economy, has large export earnings, and is one of the key industries identified as a growth river in the current and future State economy. This industry, and those involved in it, know and appreciate the nature of the challenges agricultural businesses face and generally seek to prepare for the inevitable peaks and troughs industries involved in commodity markets face. At times such as dairy farmeers are currently facing, targeted support is required to ensure the short and long term sustainablility of this important industry.

As i am sure you are aware, attracting future investment and a dynamic workforce will be made all the more difficult without appropriate support for our current farmers and their families. I stand ready to assist in any way possible, and I know that you will do everything you can to relieve this significant challenge and burden facing so many of our farmers - most of which are beyond their control.

About Ruth Forrest

Ruth was born in Burnie in 1962. She was raised on a farm at Riana and has lived on the North West Coast all her life. She attended Riana Area School, Ulverstone High School and Hellyer College and afterwards worked as a nurse and midwife in Burnie until she was elected to the Legislative Council in the Parliament of Tasmania in 2005. Ruth was re-elected in 2011. Ruth lives in Wynyard and spend a lot of time traveling within her electorate including Circular Head, the West Coast, Wynyard and King Island.